Guiding consumers since 2009

Interest rate decision on webcast

By Staff Writer

The Monetary Policy Committee of the Reserve Bank has been meeting Wednesday the 12th of August and today the Thursday the 13th. Including this one there are only three more meetings of the MPC before Tito Mboweni moves on. As always there is speculation regarding what the decision of the MPC will be. Most commentators seem to expect no cut, although there have been some rather loud calls for cuts and large ones at that. The decision will be live on webcast at 3 pm. So what are the chances?

 

  • Most economists say no cut
  • Twittersphere says no
  • Mboweni may want a swan song

 

So although the prospects don't seem very good and even though major decisions like this should be based on hard facts often sentiments seeps into the decision, after all the invisible hand is often the sentiment and emotion of the market rather than some abstract mechanism. It is the feeling and intuitions of actual people in the market which sways their economic decisions. The data may be looking slightly better on the inflation front, but other figures show that the economy is still in decline so there are arguments both for and against a cut.

Tito Mboweni is on his way out and may want to get a bit of feelgood back from the market before he goes. Then again he is on record as saying the Governor of the Reserve bank is not a position to be based on popularity. However his past form shows that he does like to spring the odd surprise. Justmoney asked the Twittersphere what they thought and most said no change, and that The Guv will wait for the effects of previous cuts to filter through. There was even one call for an increase given that there may be further turmoil to come in international markets which could still wash over us here. Watch it live on webcast at 3 pm.

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions